Buy A Move In Ready Home or Fix One Up? Gettysburg PA Real Estate is available in all forms, but what is the best choice for each individual buyer?
We've already established that there isn't a buyer in the market that isn't taking advantage of the inventory and looking for the best deal, at least what they seem to think is the best deal. So recently the "fixer upper" has been mentioned quite a few times. The particular people I'm working with have gone to both ends of the spectrum. We've seen move in ready, foreclosures, and the god awful.
This is a great opportunity to look at the financial aspects and potential net gains from buying a fixer upper or buying a move in ready home. Before I even do this evaluation I can tell you that personally I'm leaning toward move in ready. I have some rentals that have required more than their fair share of renovating which isn't always in the budget but necessary. That being said lets consider some of the items that would effect a buyers decision.
1.) I think first and foremost you have to consider how long you're planning on staying in the house. If you're considering living in a home for only 5 years it's imperative that you consider the amount of money that you would spend on a payment over 5 years vs. how much cash it would take to renovate the property. If the payment difference between the fixer upper and move in ready is 400/mo it's equates to 24,000 over 5 years. Make sure it makes sense either way.
2.) What is the equitable value of the renovation? It wouldn't make sense to spend 50,000 renovating a property only to find out that the house only gained 20,000 in value after renovations. In the current economic climate you really have to consider your market and the price trends. I'd certainly avoid this scenario of prices are trending downward (they are still doing so locally).
3.) Are you prepared to live in a home while you are renovating? Are you capable of managing a renovation or are you paying someone? Can you live in a house that is being renovated?
Those are just a few, but I think in general most people are better off financing a little more of a payment in order to get a home that is completely ready to be lived in. If you're a contractor or handyman and want to take on a project, it can be rewarding but consult a Realtor to make sure you win monetarily in the end.